Financing Feasibility Single-Family Home Purchase

Guys, calm down again. I don’t think it’s fair to tear the OP apart like this.

Calm down! This has nothing to do with arrogance, but with a well-meaning piece of advice.

Then you should also phrase it a little more mildly as a well-meaning piece of advice. Then it won’t come across as arrogant, which you don’t want to be (and probably aren’t).

There are fundamental misunderstandings in dealing with finances.

Heretically claimed: Maybe you lack the understanding? ;)

I think he means an all-in leasing. That is offered by almost all car dealerships. With that, besides the leasing costs for the vehicle, all costs from maintenance, inspection and wear (partly even including tires) are covered, so you then have a certain cost certainty. The rest is covered by the manufacturers’ warranties.

So basically his comment is not as stupid as some users here make it out to be.

And here we are again. A project you can’t afford on your own, but what are parents for? Yes, to milk them financially. To me, that’s rather disgusting.

Ok. That is your attitude. I respect that. By the way, it is basically my attitude too. But then

Spoiling grandchildren

also doesn’t really fit, does it? In my opinion, the best way to “spoil” your grandchildren is by helping them grow up in a nice home. Consumption alone has never made anyone happy.

It’s not about getting 200k EUR gifted. The financing becomes feasible if 10-20k EUR are “gifted” to pay off the car financing.

It would be helpful to maybe do a little calculation and get the OP to start calculating in the right direction themselves.

Exactly. And that’s why I’m going to try it now. In my opinion, we have already seen much worse “last-minute commands” here.


You currently have a net monthly income of 3,300 EUR.

She:
The salary for a tax clerk is, in my opinion, too low. You can approach the boss and ask for a raise. Alternatively, I would perhaps apply elsewhere.


He:
He is probably under the TVöD (Collective Agreement for the Public Service). The question is in which experience level and whether (if so, when) a salary step increase is to be expected.


Total expenses:
You estimate your total monthly expenses without housing costs at around 1,400 EUR. In addition, there are about 100 EUR per month for the most important insurances, which apparently are still missing here.


Surplus:
That results in a monthly surplus of 1,800 EUR. 300 EUR per month should be set aside for unforeseen expenses (vacation, repairs, replacement investments, etc.): that leaves 1,500 EUR.

The ancillary costs should be calculated with 3.00 EUR per m². Let’s assume it’s 120 m²: that makes 360.00 EUR per month.


Financing:
That leaves 1,140 EUR for the monthly installment. With these professions, the biggest salary jumps are no longer to be expected in the future. Therefore, I would take out a full repayment loan in your situation. Assumed interest rate for 30 years: 2.00 %. Without special repayments, you would be done at age 58 or 60.

The installment is 1,146 EUR per month.


Additional monthly liquidity:
You can create real breathing room, for example, if the car loan is paid off through a financial injection from the parents. Then you have 350 EUR more liquidity per month.

The apartment currently rented rent-free from the current landlord is completely excluded from the calculation. If that landlord is no longer around in a few years, you can generate additional liquidity in the form of rental income here.


Situation with children:
That she stays completely at home and takes care of the children will of course not work with his income.

Heretically claimed: Maybe you also lack the understanding? ;)

I think he means an all-in leasing. This is offered by almost all car dealerships. This covers not only the leasing costs for the vehicle but also all costs for maintenance, inspection, and wear and tear (sometimes even including tires), so that you have a certain cost certainty. The rest is covered by the manufacturers' warranties.

So basically, his comment is not as dumb as some users here are portraying it.

has captured and conveyed it correctly with the statement. You have to be able to afford even an all-in leasing. Private leasing is the most expensive way to acquire a car, but there is no fuel card, insurance, or maintenance included.
Company leasing, let's say quite openly, if the employer even offers it at all, you have to be able to get/negotiate it with that salary.

has captured and repeated it correctly with the statement. You also have to be able to afford an all-in leasing. Private leasing is the most expensive way of acquiring a car, but there is neither a fuel card, insurance nor maintenance included. Company leasing, let's put it frankly, if the employer even offers it, you have to be able to get/negotiate it with the salary.

Private leasing is not equal to private leasing. There are definitely offers where you can come off really cheap – that’s what the so-called leasing factor is for. Private leasing does not always mean leasing a fancy Mercedes for €600. For example, I lease a small vehicle as a second car for under €100, which is cheaper than a bus and train ticket here. And with that, I ride great, driving a new car relaxed for 3 years without repair costs or other "surprises."

Exactly. And that's why I'm going to try it now. In my opinion, we have already seen far worse going-away commands here. You currently have a net monthly income of 3,300 EUR. She: The salary for a tax clerk is, in my opinion, too low. You could approach the boss and ask for a raise. Alternatively, I might consider applying somewhere else. He: He is probably in the TVöD. The question here is in which experience level and whether (if yes, when) a pay grade increase is to be expected. Total expenses: You estimate your total monthly expenses excluding housing costs at around 1,400 EUR. In addition, there are about 100 EUR per month for the most important insurances, which apparently are still missing here. Surplus: This results in a surplus of 1,800 EUR per month. 300 EUR per month should be set aside for unforeseen expenses (vacation, repairs, replacement investments, etc.): this leaves 1,500 EUR. The ancillary costs should be set at 3.00 m². Let's assume it's 120 m²: that makes 360.00 EUR per month. Financing: So, 1,140 EUR remain for the monthly installment. With these professions, no major salary increases are expected in the future. Therefore, in your situation, I would take out a full repayment loan. Assumed interest rate for 30 years: 2.00%. Without special repayments, you will be finished at age 58 or 60. The rate is 1,146 EUR per month. Additional monthly liquidity: You can really free up cash by, for example, redeeming the car financing with a financial injection from the parents. Then you have another 350 EUR per month more liquidity. The apartment currently rented rent-free from the current landlord was completely excluded from the calculation. If he is no longer around in a few years, you can also generate additional liquidity here in the form of rental income. Situation with children: That she stays completely at home and takes care of the children will, of course, not work with his income.

- You forgot the 150€ hereditary lease, right? - 360€ ancillary costs are rather unrealistic for an existing building. - Is the buyer then also the landlord and has to build reserves as a landlord to maintain the other unit for the freeloading ex-owner? - Is 800€ regularly saved monthly currently? - Otherwise, there is nothing wrong with a car financing. Why should Mom and Dad be helping out again here? So that you can afford a property that you actually can't afford?

Private leasing is not the same as private leasing.
There are definitely offers where you get a really good deal - that's what the so-called leasing factor is for.
Private leasing doesn't always mean leasing a big Mercedes for 600€.
For example, I lease a small car as a second vehicle for under 100€, which is cheaper than a bus and train ticket here.
And with that, I’m very happy, driving a new car comfortably for 3 years without repair costs or other "surprises."

I know the prices in the private leasing sector and what’s involved and what options there are. But not everyone wants to lease a VW up for 110€ with 10k km p.a., bare without maintenance, insurance, and so on.

Private leasing offers in the Golf class similar to company leasing but without a fuel card and with 10k km are somewhere around 400€ upwards. Doesn’t make the situation any better if you spend a quarter of your salary on the car, does it?